Banking Unit - Wayground/Quizizz

What is the difference between a checking account, a savings account, a Certificate of Deposit (CD), and a Money Market account?

• A checking account is for daily transactions, a savings account is for saving money with limited withdrawals, a CD locks money for a set period with higher interest, and a Money Market account offers higher interest with limited transactions.

• A checking account is for long-term savings, a savings account is for daily spending, a CD allows unlimited withdrawals, and a Money Market account has no interest.

• A checking account and savings account are the same, a CD is only for businesses, and a Money Market account does not offer interest.

• A checking account is for investments, a savings account is for loans, a CD is for credit building, and a Money Market account is for paying bills.

Which of the following account types typically offers the highest interest rate?

• Checking Account

• Savings Account

• Certificate of Deposit (CD)

• Money Market Account

What does 'pay yourself first' mean in the context of savings strategies?

• It means setting aside money for savings before spending on other expenses.

• It means paying off all your debts before saving any money.

• It means spending money on entertainment before saving.

• It means saving only what is left after all expenses are paid.

What is the recommended emergency fund target in terms of months of expenses?

• 3–6 months of expenses

• 1–2 months of expenses

• 9–12 months of expenses

• 12–18 months of expenses

The 50–30–20 rule in budgeting stands for:

• 50% Needs, 30% Wants, 20% Savings/Debt

• 50% Wants, 30% Needs, 20% Savings

• 50% Savings, 30% Debt, 20% Needs

• 50% Debt, 30% Savings, 20% Wants

What are some causes and fixes for living paycheck to paycheck?

• Causes include overspending, lack of budgeting, and insufficient income. Fixes include budgeting, reducing expenses, and increasing income.

• Causes include high investment returns and frequent promotions. Fixes include spending more and saving less.

• Causes include winning the lottery and inheriting wealth. Fixes include ignoring budgets and increasing debt.

• Causes include too much savings and low expenses. Fixes include spending all income and avoiding financial planning.

What is the difference between simple and compound interest?

• Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus accumulated interest.

• Simple interest is calculated on the principal and interest, while compound interest is calculated only on the principal.

• Simple interest is calculated annually, while compound interest is calculated monthly.

• Simple interest and compound interest are always equal for any time period.

Why does starting retirement savings early matter?

• Because compound interest allows savings to grow more over time, so starting early increases total savings.

• Because starting late gives you more investment options.

• Because early savings are not affected by inflation.

• Because retirement accounts are only available to young people.

FDIC/NCUA insurance covers which of the following?

• Stocks

• Bank deposits

• Mutual funds

• Real estate

Which of the following is NOT a payment method listed in the study guide?

• Debit card

• Credit card

• Cryptocurrency

• Checks